Chattanooga Lands Second Volkswagen Plant

July 14, 2014 16:03 pm

by Nathan · 10 comments

Volkswagen opened up its first American assembly plant a few years ago in Chattanooga, TN. It was a tremendous investment for the city and surrounding region (including northwest Georgia). Now, another big announcement has been made: Volkswagen will build a new assembly facility to produce its new crossover SUV in Chattanooga.

The $600 million plant has been the worst kept secret for a while now. There have been rumblings of VW building the new plant next to its existing Passat assembly plant for a couple of years, and now it’s official. From the Chattanoogan.com:

VW officials said Monday morning, “Within the framework of its Strategy 2018 plan, the Volkswagen Group is expanding its industrial footprint in the US. The Board of Directors of Volkswagen Group of America has decided to award the production of the new midsize SUV to the Chattanooga plant in Tennessee. The Group will be investing a total of approximately US $900 million (€643 million) in the production of a newly developed, seven-passenger SUV, and creating 2,000 additional jobs in the US. About US $600 million (€432 million) will be invested in Tennessee.

Prof. Dr. Martin Winterkorn, chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg, said, “The United States of America is and will remain one of the most important markets for Volkswagen. Over the past few years, we have achieved a lot there. We are now launching the second phase of the Volkswagen campaign in the US. With the midsize SUV, the expansion of the Chattanooga plant and the new development center, the focus is on the wishes of the US customer. This is also a strong signal for the US as an industrial and automobile production location. The Volkswagen brand is going on the attack again in America.”

Jobs!

{ 10 comments… read them below or add one }

Charlie July 14, 2014 at 4:15 pm

Seems like the Germans are getting a bit excited after yesterday’s win. But I do get a little nervous when they start ending press releases saying they’re getting ready to attack in America again.

https://www.youtube.com/watch?v=V8lT1o0sDwI

Dash Riptide July 14, 2014 at 8:31 pm

I’m still miffed about Pearl Harbor.

seenbetrdayz July 15, 2014 at 4:15 pm

That was Mitsubishi’s fault.

xdog July 14, 2014 at 5:02 pm
saltycracker July 14, 2014 at 11:04 pm

Details? If TN taxpayers are out a few hundred million to get this plant and NW GA can get a boom involving suppliers and employees, we have a lot to celebrate.

Raleigh July 15, 2014 at 8:16 am

Salty,
I read several articles such as this one.
http://www.daltondailycitizen.com/local/x1221299283/Locals-wonder-when-or-if-VW-plant-will-impact-north-Georgia
I’m not sure the same is true today but you can sure see the “feelings” of our neighbors to the north. I wonder how many from TN were employed by the carpet industry when it was booming.

saltycracker July 15, 2014 at 9:14 am

Guess I was too optimistic and overlooked comparing TN to Georgia personal income taxes, property taxes, sales taxes, drive times/roads to work…..wonder what the stories are with our big plants near border states….Kia ?

I doubt it is some VW, state understanding. However the state’s have gotten smarter in negotiations after a few big UAW manufacturers had seniority provisions that allowed workers to tranfer in not only reducing local manpower but costing the state millions in training funds and other “job creating” funding.

Big plants are like sports stadiums………expensive….if they would only draw workers and reduce those on public programs…..

Raleigh July 15, 2014 at 10:24 am

I think I read somewhere that there was about 10 to 20% Alabama citizens working at the KIA plant. Big plants don’t usually directly bring in large job numbers. It’s the spinoff and support industries that really run up those numbers.

Will Durant July 15, 2014 at 8:33 am

If I was working on the Tennessee side of the line I would certainly move to that side of the line as well rather than pay Georgia 6% of my income.

Raleigh July 15, 2014 at 10:29 am

That’s always a possibility but for many that’s not an option. Not that that is right or wrong but just the way it is.